chevrons

Back to Previous Page

Company Quarterly Earnings Update – QNS VN – 2019 Q2

Summary of the H1 2019 results of Quang Ngai Sugar JSC (QNS VN) 

H1/2019 results: highlights
  • Revenue increased by 2.5% y/y to VND4,072 bn. QNS’s main product lines developed in opposite directions: soymilk +13.0% y/y, whereas sugar -10.9% y/y.
  • QNS’ net profit declined by 6.5% to VND 520bn. Affecting factors were 1) higher overall gross margin thanks to the soy milk segment despite the lower margin of the sugar segment; 2) higher administration expenses due to increased overhead costs related to the development of the Refined-Extra/ RE Sugar factory; and 3) the higher corporate income tax rate as a tax incentive ended.
  • The company’s financial position remains solid with cash and deposits making up 26% of total assets, the and leverage was only moderate (D/E 0.18x and D/A 0.25x).
Outlook
  • QNS’s main revenue and profit driver is its soy milk segment. This segment’s growth is supported by 1) conversion from unbranded to branded consumption; 2) QNS’s further penetration into the Southern Vietnamese market, the largest regional market in Vietnam but making up only 15% of QNS’s soy revenue.
  • The sugar segment, still a major revenue contributor, is much less significant in terms of profit contribution. In 2019, sugar (only Refined-Standard/RS) revenue is to decline by 40% (volume -30% because of unfavorable weather conditions, and price -10% as international sugar prices weakened). From 2020 onward, sugar revenue will benefit from QNS’s new RE production. We expect regional sugar prices to go up as Thailand removed some of its protection and plans to partially convert sugarcane to biochemical production items. The RE production is likely to benefit from Vietnam’s abolishment of sugar import quota and tariffs due to ASEAN Trade in Goods Agreement (ATIGA).
  • QNS’ net profit is estimated to decline by 9.7% in 2019, then +12.5% in 2020.
Recommendation

Company ratings and target prices are accessible for clients only.

If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.

Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.


Featured image credit: soha.vn

Related News & Insights
Find out more navigation_button
news

Summary of Q1 2025 results and outlook of Vinamilk JSC (VNM VN) Net revenue declined 8.3% y/y to VND12,935bn in Q1/2025, mainly due to a 12.9% fall in local sales (77.4% of total) following the strategic phase-out of underperforming distributors in the traditional channel. Although the average selling price rose by 2% to partially pass […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Hoa Phat Group JSC (HPG VN) Vietnam steel market posted double-digit growth in Q1/2025, defying global trade turbulence. Total steel consumption rose 12.2% y/y to 7.5mn tons on the back of robust domestic demand —supported by accelerating public investment and a gradual recovery in the real estate […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Dong Hai Ben Tre JSC (DHC VN) Net revenue was VND826bn (+1.9% y/y) and net profit came to VND76bn (+36.1% y/y) thanks to margin improvement. Kraft paper revenue accounted for 81.1% of total revenue, increasing 1.4% thanks to a slightly higher average selling price (ASP) while volume […]

Read Newsarrow
Find out more navigation_button